Traders expect peso to extend losses.

(From BusinessWorld (Philippines))

Byline: Ruby Anne M. Rubio

Currency traders expected the peso to extend its recent losses after it fell to new record lows last week.

They told BusinessWorld that negative political news showed no signs of abating, and will continue to dampen market sentiment and investor confidence.

In the near term, the peso was forecast to test the next support level of P55.50 to the dollar, they said.

Already weighed down by increased corporate demand for dollars, the peso had fallen hard on political jitters and the declining supply in foreign currency.

"If you talk about economic fundamentals, the movement …